The taxpayer had over-reported expenses and under-reported revenue connected with his moving business. Although previously warned to keep adequate business records, he had failed to do so, and the records he did have, which he collected in a box, included receipts for personal expenses (including expenses for a jacuzzi package, tickets to an unspecified event, and a canopy on his house) and failed to include various client invoices. Webb J. stated (at para. 22):
It seems clear to me that the Appellant was indifferent with respect to whether he complied with the ITA and the ETA and that the mens rea of recklessness has been established in this case.